Make us your home page
Instagram

Raymond James to pay back $1.69 million in overcharges to 15,500 investors

St. Petersburg-based Raymond James Financial has been ordered to pay more than $1.69 million in restitution to more than 15,500 investors who were charged "unfair and unreasonable commissions on securities transactions" dating back to 2006, securities regulators said Thursday.

The Financial Industry Regulatory Authority, which oversees U.S. securities firms, also fined Raymond James Financial $200,000 and its subsidiary Raymond James & Associates $225,000.

FINRA said it found that Raymond James used automated commission schedules in equity transactions that wound up charging thousands of customers excessive commissions between Jan. 1, 2006, and Oct. 31, 2010. Most of the transactions involved low-priced securities.

Regulators blamed the overcharges on inflated schedules and rates used by Raymond James that did not take into consideration issues like the type of security and size of a trade in setting its commissions.

"Raymond James failed to adequately monitor its supervisory systems, and as a result, both Raymond James & Associates and Raymond James Financial Services overcharged thousands of customers," Brad Bennett, FINRA executive vice president and chief of enforcement, said in a statement. "Broker-dealers must ensure that their automated systems set commission charges that are fair to investors."

In settling, Raymond James neither admitted nor denied the charges, but consented to the entry of FINRA's findings, the authority said.

Raymond James spokesman Steve Hollister said his firm was pleased to resolve the issue.

"The affected trades represent less than 0.1 percent of the total equity trades executed by Raymond James during the period reviewed," he said. "The average impact per affected account over the five-year time period is approximately $110."

Affected clients will be notified by their financial advisers and receive a credit to their accounts. Clients no longer with Raymond James will receive a check and letter explaining the refund.

Raymond James revised its automated commission schedule July 1 after being notified of FINRA's findings, Hollister added.

In 2010, FINRA ordered Raymond James Financial to pay $12 million, saying it was liable in a case involving broker raiding in four A.G. Edwards & Sons branches in Indiana, Illinois and Arkansas.

Raymond James to pay back $1.69 million in overcharges to 15,500 investors 09/29/11 [Last modified: Thursday, September 29, 2011 9:30pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Last steel beam marks construction milestone for Tom and Mary James' museum

    Growth

    ST. PETERSBURG — Tom and Mary James on Wednesday signed their names to the last steel beam framing the 105-ton stone mesa that will be built at the entrance of the museum that bears their name: the James Museum of Western and Wildlife Art.

    The topping-out ceremony of the James Museum of Western & Wildlife Art was held Wednesday morning in downtown St. Petersburg. Mary James (from left), husband Tom and Mayor Rick Kriseman signed the final beam before it was put into place. When finished, the $55 million museum at 100 Central Ave. will hold up to 500 pieces of the couple's 3,000-piece art collection. [Courtesy of James Museum of Western & Wildlife Art]
  2. Heights Public Market to host two Tampa Bay food trucks

    Business

    TAMPA — The Heights Public Market announced the first two food trucks for its "rotating stall," which will feature new restaurants every four months. Surf and Turf and Empamamas will be rolled out first.

    Heights Public Market is opening this summer inside the Tampa Armature Works building.
[SKIP O'ROURKE   |   Times file photo]

  3. Author Randy Wayne White could open St. Pete's biggest restaurant on the pier

    Food & Dining

    ST. PETERSBURG — The story begins with Yucatan shrimp.

    St. Petersburg Deputy Mayor Kanika Tomalin, pilot Mark Futch, Boca Grande, St. Petersburg Mayor Rick Kriseman, and author and businessman Randy Wayne White,  Sanibel, exit a Maule Super Rocket seaplane after taking a fight around Tampa Bay off the St. Petersburg waterfront, 6/28/17.  White and his business partners are in negotiations with the City of St. Petersburg to build a fourth Doc Ford's Rum Bar & Grille on the approach to the St. Petersburg Pier with a second event space on the pier according to White. The group met near Spa Beach after a ground breaking ceremony for the new pier. "We want to have our business open by the time the pier opens," said White. Other Dr. Ford restaurants are located on Sanibel, Captiva and Ft. Myers Beach. SCOTT KEELER   |   Times
  4. Guilty plea for WellCare Health Plans former counsel Thaddeus Bereday

    Business

    Former WellCare Health Plans general counsel Thaddeus M.S. Bereday pleaded guilty to one count of making a false statement to the Florida Medicaid program, and faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set, acting U.S. Attorney W. Stephen Muldrow of the Middle District …

    WellCare Health Plans former general counsel Thaddeus M.S. Bereday, pleaded guilty to one count of making a false statement to the Florida Medicaid program, and faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set, acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida stated Wednesday. [LinkedIn handout]
  5. DOT shows alternatives to former Tampa Bay Express toll lanes

    Transportation

    TAMPA — State transportation officials are evaluating at least a half-dozen alternatives to the controversial Tampa Bay interstate plan that they will workshop with the community over the next 18 months.

    Florida Department of Transportation consultant Brad Flom explains potential alternatives to adding toll lanes to Interstate 275 during a meeting Wednesday at DOT's Tampa office. Flom presented seven diagrams, all of which swapped toll lanes for transit, such as light rail or express bus, in the I-275 corridor from downtown Tampa to Bearss Ave. [CAITLIN JOHNSTON | Times]